“Asset-management company Amvescap PLC plans to acquire Whitehall Asset Management, a small New York money manager focusing on wealthy clients,” according to a report in today’s Wall Street Journal.

“The decision comes days after the British firm, whose U.S. holdings include fund groups AIM Management and Invesco Funds, announced plans to reduce its overall staff by about 500 people, or 6%, in the coming year.”

“Amvescap has said in the past that it would pursue opportunities to increase its business among wealthy investors, despite the recent stock-market slump that has hurt overall financial results for asset managers.”

“In the deal, expected to close during the first quarter, Amvescap will pay an undisclosed cash sum to acquire Whitehall from Industrial Bank of Japan Trust Co., part of Mizuho Holdings Inc.”

“The deal will add about $1.5 billion in assets to the $320 billion already under management at Amvescap. Whitehall also runs stock and bond mutual funds with about $220 million in assets. Management of those funds aren’t expected to change.”

“Despite the overall reductions in its work force, Amvescap is expected to add some of Whitehall’s 37 employees. The trust business of Whitehall and its predecessors date back to the 1920s. It became affiliated with the Industrial Bank of Japan in 1986.